SWOT Analysis of Deliveroo
Deliveroo is a popular British online food delivery provider company. It was founded by Greg Orlowski and Will Shu in 2013. It is currently headquartered in London, England, UK. The company has a strong global presence in more than 200 countries like UAE, Kuwait, Australia, UK, Belgium, France, Italy, Ireland, Hong Kong, Singapore, and more. Deliveroo has employed 2300+ employees to date to maintain its global operations. On the other hand, more than 110000 self-employed couriers are working for the brand. In 2021, the annual revenue of the company was 922.5 million pounds. Now, read the SWOT Analysis of Deliveroo.
Zomato, Uber Eats, DoorDash, ChowNow, Swiggy, Postmates, and GrubHub are the main competitors of Deliveroo. We are conducting its SWOT analysis to unearth its strengths, weaknesses, opportunities, and threats. In this way, we can easily identify the success story that the company has achieved in such a short period of time.
SWOT Analysis of Deliveroo
Company Name: Deliveroo
Founders: Will Shu, Greg Orlowski
Founded: February 2013, London, United Kingdom
Headquarters: London, England, United Kingdom
Parent Company:
CEO: Will Shu (Feb 2013-)
Type: Public
Sector: Online Food Ordering, Food Delivery
Tagline: Proper Food, Proper Delivery
Unique Selling Proposition: Providing a network of dedicated couriers and an ordering platform.
Customers: Youth from middle and higher-income groups.
Target Consumers: People from the middle and upper-middle class.
Revenue: 1.8 billion Euros (2021)
Net Income: 108.7 million Euros (2021)
Strengths of Deliveroo | SWOT Analysis of Deliveroo
- Robust Supply Chain Network:
The supply chain and business model of Deliveroo are really interesting. The company does not produce its products, so self-employed couriers deliver the food. Just because of it, the company has attracted so many investors and people. They all work for a common goal without even disturbing each other’s comfort.
- Cost Edge:
The company is managing its mobile application and has complete control over it. They don’t keep permanent employees because they don’t need them every time. This thing allows the brand to save costs in terms of taxes and maintenance. Moreover, Deliveroo hires people on a temporary basis.
- Low Pricing:
The company has partnered with kitchens that produce cost-effective products due to their relations with local suppliers. This thing gives the company a competitive edge over its rivals. In short, the customers can easily get food at affordable prices from Deliveroo.
- Excellent Management:
When it comes to management, Deliveroo’s management is highly excellent because of its owner’s professional intellectual career. Greg was an investment banker whereas Will was a director in a software firm. So, their experiences are working for the company. It is one of the major strengths of the company.
- Strong Marketing:
Young adults are the main market of Deliveroo. These people love to order food from their phones because they are tech-savvy. So, the company tries even the smallest update and performs attractive marketing to get the attention of these young people. They are improving their online platform to make their experience even more amazing.
- Facility and Location:
The company is not like a traditional kind of food delivery company. They have gig workers, freelance kitchens, and innovation that allow the brand to increase its business rapidly in other locations of the world. It is another big plus point of the company.
Weaknesses of Deliveroo | SWOT Analysis of Deliveroo
- Tech Malfunction:
The company is heavily dependent on the app for running its business operation. The risk of tech malfunction is always there. Its app has crashed many times. Due to this, thousands of customers lost their orders and money. The whole situation brought plenty of backlash and criticism from customers. Moreover, the company’s communication system and customer support are also not very engaging.
- Public Relation Problems:
The brand has indulged with the public in a negative way due to the riders’ safety and cycle training. They are not giving much protocol to their workers, which brings so many negative things about the company. Just because of this, the company has to deal with the media and the press. The company is making headlines over its policies.
- Branding Problems:
In 2016, the brand re-branded everything in order to gain a competitive edge over competitors such as Uber Eats, Amazon Restaurants, and more. Its main attraction was its competitive prices. But, now it is charging so much from customers. This thing is destroying the brand loyalty among customers.
Opportunities for Deliveroo | SWOT Analysis of Deliveroo
- New Alliances and Partnerships:
In 2016, the company partnered up with a famous brand Heineken in order to deliver online alcohol products. Just like this, the company can make new alliances and partnerships with other companies to deliver their products. This would allow the company to expand its global operations and sales.
- Food Trends:
Some customers do not prefer the food of big restaurants. They prefer small kitchens because they prepare healthy and good food. Deliveroo can take advantage of changing food trends to target new customers. They should design its promotional and marketing strategy accordingly.
- Latest Technology:
The food industry has increased since 2015. The company should invest in new resources and projects in order to take competitive advantage. They should exploit the latest technologies to attract and fulfill the demand of new customers. In fact, the company has collaborated with TripAdvisor in order to bring innovation in its services. This would increase the brand awareness and image of Deliveroo.
Threats to Deliveroo:
- Changes in Taste:
After the pandemic of covid-19, the trend of takeaways and car dining has become more popular. We also know that people are more conscious about their health and food. The company should ensure that the food they are delivering must be tasty and healthy. Moreover, the changing diet patterns of customers can create big trouble for companies like Deliveroo.
- Competitors:
The online food delivery market is highly competitive due to the presence of many big players like Grub hub, Amazon, Uber Eats, Hungry House, and so on. They are cutting each other’s profit and market share by offering innovative and unique services. The company should think about some new ideas to deliver food in order to stay competitive.
- Poor Economy:
The current economic condition and recession have created so many troubles for companies like Deliveroo. The inflation rate and other economic factors have changed the spending power of customers.
Final Thoughts | SWOT Analysis of Deliveroo
It is very clear that Deliveroo is one of the leading online food delivery service companies in the world. They should work on their strengths in order to exploit more opportunities. The company should build a solid business plan in order to give tough competition to its competitors.
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